Targa Resources signs 20-year Permian gas deals with ExxonMobil

Targa Resources signed 20-year integrated midstream agreements with subsidiaries of ExxonMobil, covering gathering, processing and downstream services across the Permian Delaware and Permian Midland basins, the company said Aug. 17. Targa also announced three new natural gas processing plants in the Permian Delaware and raised its 2026 growth capital estimate to about $5.0 billion.

New acreage and extended agreements

In the Permian Delaware, the agreements add new acreage dedications for gathering, processing, treating, NGL transportation and fractionation through 2046. In the Permian Midland, they add new acreage and extend Targa's existing fee-floor gathering and processing agreements, also through 2046. Both basins carry new 20-year NGL dedications to Targa's logistics and transportation systems. The agreements extend Targa's relationship with ExxonMobil across the Permian.

Three new processing plants

Targa named the three Permian Delaware plants Wrangler, Ranger and Ranger II, with combined capacity of about 825 million cubic feet a day. The company expects them in service in the first half of 2028. Targa said it is evaluating up to five more processing plants in the Permian Delaware to handle longer-term production growth, along with the timing of an additional fractionation train at its Mont Belvieu complex.

A second Bull Run pipeline

Targa also announced a roughly 70-mile natural gas pipeline in the Permian Delaware, called Bull Run II, as part of its existing Bull Run residue system. The line will carry gas from the new plants to the Waha hub, backed by take-or-pay commitments, and is expected to start operations in the first half of 2028.

Capital plan raised

Targa updated its 2026 growth capital estimate to about $5.0 billion, covering the new Delaware plants, added field capital and the Bull Run II pipeline.

"We are excited to meaningfully expand our strategic relationship with ExxonMobil," said Matt Meloy, Targa's chief executive officer. Meloy called Targa "the largest gatherer and processor in the Permian."